Travelers vs. State Farm: Home Insurance Comparison

According to MoneyGeek's study, State Farm ranks fifth in the U.S. against other home insurance providers, while Travelers ranks 15th. State Farm and Travelers both score well overall for affordability, financial stability and customer satisfaction. However, State Farm wins out when it comes to customer satisfaction, and Travelers is slightly more affordable on average.

To help you compare the two insurance companies, MoneyGeek's review of Travelers vs. State Farm homeowners insurance delves into their average rates, coverage options and available discounts.

MoneyGeek has created a table to help you compare Travelers vs. State Farm homeowners insurance policies, outlining the companies' distinctive features. The insurers received comparable overall scores and perfect scores for financial stability, indicating that they are financially sound and able to meet their financial obligations to their policyholders.

In terms of pricing, Travelers offers slightly cheaper premiums compared to State Farm, although they both scored well for affordability. However, State Farm comes out on top for customer satisfaction.

Another advantage of State Farm is its broader range of add-on coverage options and discounts, which gives customers more choices and flexibility in tailoring their policies to their specific needs. Travelers and State Farm homeowners insurance policies are both available in 48 states (including Washington, D.C.), making them accessible options for homeowners across the country.

Travelers has a slight advantage over State Farm in terms of affordability, with a cheaper average annual rate of $2,119 compared to State Farm's rate of $2,138. However, it's important to note that these are average costs of homeowners insurance, and your actual premium may vary based on factors such as your credit score, the location of your home and the estimated cost of reconstruction.

When calculating the cost of homeowners insurance, insurance companies consider several factors, but the most important are your home's location and the amount of dwelling coverage you need.

Dwelling coverage protects you financially if your home needs to be repaired or rebuilt due to a covered incident. Therefore, the amount you choose should be approximately equal to the total costs associated with repairing or rebuilding your home.

For coverage levels ranging from $100K to $500K, Travelers is slightly more affordable than State Farm. Conversely, for coverage levels between $750K and $3 million, State Farm offers better rates.

Refer to the MoneyGeek table below to understand how dwelling coverage amounts affect homeowners insurance prices.

Homeowners insurance rates vary across states. For example, Travelers' average rate in Ohio is its lowest rate in the country at $487 per year, while it charges the highest average rate in South Carolina ($8,742 per year). Meanwhile, Rhode Island is the cheapest state for State Farm coverage ($765 per year), and Texas is the most expensive ($3,994 per year).

Refer to the MoneyGeek table below to see how homeowners insurance rates from State Farm and Travelers vary by state.

Evaluating the quality of service provided by a homeowners insurance company is just as important as considering its affordability. Prompt and efficient service is essential during the process of submitting and settling an insurance claim.

In MoneyGeek's study, State Farm narrowly beat out Travelers with a score of 91 out of 100, compared to Travelers' 88. They both scored perfectly in the area of financial stability, but State Farm outperformed Travelers in terms of customer satisfaction according to J.D. Power's Home Insurance study, leading to its higher overall customer service score.

Travelers offers seven optional coverages compared to State Farm's 12, but it has more standard coverage options than State Farm.

A typical homeowners insurance policy includes personal property, liability and dwelling coverages. However, if you're looking for additional security beyond the standard coverage options, many companies offer certain less common optional coverages.

Travelers offers an energy efficiency upgrade, while State Farm offers several more optional coverages.

Travelers offers all of the standard coverage options, but State Farm only offers four — it does not offer extended reimbursement coverage or contents replacement cost coverage. The former provides more protection if your dwelling coverage amount is not enough to cover the repair of your home, while the latter covers the cost to replace personal items at the time of loss with no deduction for depreciation.

On the other hand, State Farm offers a wider range of less common coverages, including earthquake and home systems coverage. These add-ons can be useful if you want additional protection, such as if you live in an earthquake-prone area.

Note that MoneyGeek obtained this information from the companies' websites, and they may offer additional options not advertised online.

Availing discounts can help you save more on your homeowners insurance. In our comparison of Travelers vs. State Farm homeowners insurance, we found that State Farm offers seven discount options, including all of the most common ones, whereas Travelers provides five total discounts and only three of the standard discounts.

The standard discounts offered by State Farm but not Travelers are the new home and home renovation discounts. These discounts can help you save money if you own a recently renovated or newly constructed property. Less common discounts exclusive to State Farm include the continuously insured discount and the roofing material discount.

On the other hand, Travelers offers two unique discounts: the home buyer and green home discounts. The former is available to new homeowners who have purchased their house within the last 12 months, while the latter can help you save up to 5% if your home is already certified as a green home by LEED.

Note that MoneyGeek acquired this data from the companies' websites, and they may offer other discounts that are not disclosed online.

The actual cost of your homeowners insurance will vary based on several factors, including, most importantly, the cost to repair or rebuild your home. To get a more accurate estimate of your rate, try out MoneyGeek's homeowners insurance calculator below.

If you're still unsure as to which insurer to choose, MoneyGeek has compiled a list of the best homeowners insurance for you to consider.